North Dakota 2025-2026 Regular Session

North Dakota House Bill HB1419 Compare Versions

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1		-	Sixty-ninth Legislative Assembly of North Dakota
2		-	In Regular Session Commencing Tuesday, January 7, 2025
3		-	HOUSE BILL NO. 1419
4		-	(Representatives Porter, Dockter, Heinert, O'Brien, M. Ruby, Satrom, Schauer)
5		-	(Senators Axtman, Cleary, Lee, Meyer, Roers)
6		-	AN ACT to amend and reenact sections 54-52-01, 54-52-02.1, 54-52-02.15, 54-52-06.3, 54-52-06.4,
7		-	and 54-52-17 of the North Dakota Century Code, relating to the public employees retirement
8		-	system public safety retirement plan.
	1	+	25.0041.02000
	2	+	Sixty-ninth
	3	+	Legislative Assembly
	4	+	of North Dakota
	5	+	Introduced by
	6	+	Representatives Porter, Dockter, Heinert, O'Brien, M. Ruby, Satrom, Schauer
	7	+	Senators Axtman, Cleary, Lee, Meyer, Roers
	8	+	A BILL for an Act to amend and reenact sections 54-52-01, 54-52-02.1, 54-52-02.15,
	9	+	54-52-06.3, 54-52-06.4, and 54-52-17 of the North Dakota Century Code, relating to the public
	10	+	employees retirement system public safety retirement plan.
9	11		BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
10		-	SECTION 1. AMENDMENT. Section 54-52-01 of the North Dakota Century Code is ~~amended and~~
11		-	reenacted as follows:
	12	+	SECTION 1. AMENDMENT. Section 54-52-01 of the North Dakota Century Code is
	13	+	amended and reenacted as follows:
12	14		54-52-01. Definition of terms.
13	15		As used in this chapter, unless the context otherwise requires:
14		-	1."Account balance" means the total contributions made by the employee, vested employer
15		-	contributions under section 54-52-11.1, the vested portion of the vesting fund as of June 30,
16		-	1977, and interest credited thereon at the rate established by the board.
17		-	2."Beneficiary" means any person in receipt of a benefit provided by this plan or any person
18		-	designated by a participating member to receive benefits.
19		-	3."Correctional officer" means a participating member who is employed as a correctional officer
20		-	by a political subdivisiongovernmental unit and, notwithstanding subsection 16, for an
21		-	individual employed on or after the effective date of this Act, is employed at least thirty-two
22		-	hours per week and at least twenty weeks each year of employment. A correctional officer who
23		-	is a participating member of the public safety retirement plan created by this chapter who
	16	+	1."Account balance" means the total contributions made by the employee, vested
	17	+	employer contributions under section 54-52-11.1, the vested portion of the vesting
	18	+	fund as of June 30, 1977, and interest credited thereon at the rate established by the
	19	+	board.
	20	+	2."Beneficiary" means any person in receipt of a benefit provided by this plan or any
	21	+	person designated by a participating member to receive benefits.
	22	+	3."Correctional officer" means a participating member who is employed as a correctional
	23	+	officer by a political subdivisiongovernmental unit and, notwithstanding subsection 16,
	24	+	for an individual employed on or after the effective date of this Act, is employed at
	25	+	least thirty-two hours per week and at least twenty weeks each year of employment. A
	26	+	correctional officer who is a participating member of the public safety retirement plan
	27	+	created by this chapter who begins employment on or after the effective date of this
	28	+	Act is ineligible to participate concurrently in any other retirement plan administered by
	29	+	the public employees retirement system. The term includes an individual employed by
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	31	+	HOUSE BILL NO. 1419
	32	+	HOUSE BILL NO. 1419
	33	+	with Senate Amendments
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	57	+	a correctional facility as defined in section 12 - 44.1 - 01, who is enrolled in, but has not
	58	+	yet completed, a correctional officer course approved or certified by the North Dakota
	59	+	department of corrections and rehabilitation.
	60	+	4."Deferred member" means a participating member who is not actively participating in
	61	+	the main plan under this chapter and who has an account intact in the main plan under
	62	+	this chapter.
	63	+	5."Dispatcher" means a participating member who is employed as a state radio
	64	+	dispatcher by the state or is employed as a public safety answering point dispatcher
	65	+	by a political subdivision and, notwithstanding subsection 16, for an individual
	66	+	employed on or after the effective date of this Act, is employed at least thirty-two hours
	67	+	per week and at least twenty weeks each year of employment. A dispatcher who is a
	68	+	participating member of the public safety retirement plan created by this chapter who
24	69		begins employment on or after the effective date of this Act is ineligible to participate
25		-	concurrently in any other retirement plan administered by the public employees retirement
26		-	system. The term includes an individual employed by a correctional facility as defined in
27		-	section 12 - 44.1 - 01, who is enrolled in, but has not yet completed, a correctional officer course
28		-	approved or certified by the North Dakota department of corrections and rehabilitation.
29		-	4."Deferred member" means a participating member who is not actively participating in the main
30		-	plan under this chapter and who has an account intact in the main plan under this chapter.
31		-	5."Dispatcher" means a participating member who is employed as a state radio dispatcher by
32		-	the state or is employed as a public safety answering point dispatcher by a political
33		-	subdivision and, notwithstanding subsection 16, for an individual employed on or after the
34		-	effective date of this Act, is employed at least thirty-two hours per week and at least twenty
35		-	weeks each year of employment. A dispatcher who is a participating member of the public
36		-	safety retirement plan created by this chapter who begins employment on or after the effective
37		-	date of this Act is ineligible to participate concurrently in any other retirement plan
38		-	administered by the public employees retirement system.
39		-	6."Eligible employee", except as otherwise provided under section 54-52-02.15, means a
40		-	permanent employee who meets all of the eligibility requirements set by this chapter and who
41		-	is eighteen years or more of age. The term includes appointive and elective officials under
42		-	sections 54-52-02.5, 54-52-02.11, and 54-52-02.12, and nonteaching employees of the
43		-	superintendent of public instruction, including the superintendent of public instruction, who
44		-	elect to transfer from the teachers' fund for retirement to the public employees retirement
45		-	system under section 54-52-02.13, and employees of the state board for career and technical H. B. NO. 1419 - PAGE 2
46		-	education who elect to transfer from the teachers' fund for retirement to the public employees
47		-	retirement system under section 54-52-02.14. The term does not include nonclassified state
48		-	employees who elected under section 54-52.6-02 to become members of the retirement plan
49		-	established under chapter 54-52.6. The term does include employees of the judicial branch
50		-	and employees of the board of higher education and state institutions under the jurisdiction of
51		-	the board of higher education.
52		-	6.7."Emergency medical services personnel" means a participating member employed by a
53		-	political subdivision as an emergency medical services personnel, as defined under section
54		-	23 - 27 - 02 and, notwithstanding subsection 16, for an individual employed on or after the
55		-	effective date of this Act, is employed at least thirty-two hours per week and at least twenty
56		-	weeks each year of employment. An emergency medical services personnel who is a
57		-	participating member of the public safety retirement plan created by this chapter who begins
58		-	employment on or after the effective date of this Act is ineligible to participate concurrently in
59		-	any other retirement plan administered by the public employees retirement system.
60		-	8."Employee" means any individual employed by a governmental unit, whose compensation is
61		-	paid out of the governmental unit's funds, or funds controlled or administered by a
62		-	governmental unit, or paid by the federal government through any of its executive or
63		-	administrative officials; licensed employees of a school district means those employees
64		-	eligible to participate in the teachers' fund for retirement who, except under subsection 2 of
65		-	section 54-52-17.2, are not eligible employees under this chapter.
	70	+	concurrently in any other retirement plan administered by the public employees
	71	+	retirement system.
	72	+	6."Eligible employee", except as otherwise provided under section 54-52-02.15, means
	73	+	a permanent employee who meets all of the eligibility requirements set by this chapter
	74	+	and who is eighteen years or more of age. The term includes appointive and elective
	75	+	officials under sections 54-52-02.5, 54-52-02.11, and 54-52-02.12, and nonteaching
	76	+	employees of the superintendent of public instruction, including the superintendent of
	77	+	public instruction, who elect to transfer from the teachers' fund for retirement to the
	78	+	public employees retirement system under section 54-52-02.13, and employees of the
	79	+	state board for career and technical education who elect to transfer from the teachers'
	80	+	fund for retirement to the public employees retirement system under section
	81	+	54-52-02.14. The term does not include nonclassified state employees who elected
	82	+	under section 54-52.6-02 to become members of the retirement plan established
	83	+	under chapter 54-52.6. The term does include employees of the judicial branch and
	84	+	employees of the board of higher education and state institutions under the jurisdiction
	85	+	of the board of higher education.
	86	+	6.7."Emergency medical services personnel" means a participating member employed by
	87	+	a political subdivision as an emergency medical services personnel, as defined under
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	121	+	section 23 - 27 - 02 and, notwithstanding subsection 16, for an individual employed on or
	122	+	after the effective date of this Act, is employed at least thirty-two hours per week and
	123	+	at least twenty weeks each year of employment. An emergency medical services
	124	+	personnel who is a participating member of the public safety retirement plan created
	125	+	by this chapter who begins employment on or after the effective date of this Act is
	126	+	ineligible to participate concurrently in any other retirement plan administered by the
	127	+	public employees retirement system.
	128	+	8."Employee" means any individual employed by a governmental unit, whose
	129	+	compensation is paid out of the governmental unit's funds, or funds controlled or
	130	+	administered by a governmental unit, or paid by the federal government through any of
	131	+	its executive or administrative officials; licensed employees of a school district means
	132	+	those employees eligible to participate in the teachers' fund for retirement who, except
	133	+	under subsection 2 of section 54-52-17.2, are not eligible employees under this
	134	+	chapter.
66	135		7.9."Employer" means a governmental unit.
67		-	8.10."Firefighter" means a participating member who is employed as a firefighter by a ~~political~~
68		-	subdivision and, notwithstanding subsection 13, for an individual employed ~~after July 31,~~
69		-	2017, is employed at least thirty-two hours per week and at least twenty ~~weeks each year of~~
70		-	employment. A firefighter who is a participating member of the law ~~enforcementpublic safety~~
71		-	retirement plan created by this chapter who begins ~~employment after July 31, 2017, is~~
72		-	ineligible to participate concurrently in any other ~~retirement plan administered by the public~~
73		-	employees retirement system. The term ~~does not include a firefighter employee of the North~~
74		-	Dakota national guard.
75		-	9.11."Funding agent" or "agents" means an investment firm, trust bank, or other financial ~~institution~~
76		-	which the retirement board may select to hold and invest the employers' and ~~members'~~
77		-	contributions.
78		-	10.12."Governmental unit" means the state of North Dakota, except the highway patrol for ~~members~~
79		-	of the retirement plan created under chapter 39-03.1, or a participating ~~political subdivision of~~
80		-	the state.
	136	+	8.10."Firefighter" means a participating member who is employed as a firefighter by a
	137	+	political subdivision and, notwithstanding subsection 13, for an individual employed
	138	+	after July 31, 2017, is employed at least thirty-two hours per week and at least twenty
	139	+	weeks each year of employment. A firefighter who is a participating member of the law
	140	+	enforcementpublic safety retirement plan created by this chapter who begins
	141	+	employment after July 31, 2017, is ineligible to participate concurrently in any other
	142	+	retirement plan administered by the public employees retirement system. The term
	143	+	does not include a firefighter employee of the North Dakota national guard.
	144	+	9.11."Funding agent" or "agents" means an investment firm, trust bank, or other financial
	145	+	institution which the retirement board may select to hold and invest the employers' and
	146	+	members' contributions.
	147	+	10.12."Governmental unit" means the state of North Dakota, except the highway patrol for
	148	+	members of the retirement plan created under chapter 39-03.1, or a participating
	149	+	political subdivision of the state.
81	150		11.13."National guard security officer or firefighter" means a participating member who is:
82	151		a.A security police employee of the North Dakota national guard; or
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83	185		b.A firefighter employee of the North Dakota national guard.
84		-	12.14."Participating member" means an eligible employee who through payment into the ~~plan has~~
85		-	established a claim against the plan.
86		-	13.15."Peace officer" means a participating member who is a peace officer as defined in ~~section~~
87		-	12-63-01 and is employed as a peace officer by the state, except by the ~~highway patrol for~~
88		-	members of the retirement plan created under chapter 39-03.1, or is ~~employed by a political~~
89		-	subdivision and, notwithstanding subsection 14, for persons ~~employed after August 1, 2005, is~~
90		-	employed thirty-two hours or more per week and at ~~least twenty weeks each year of~~
91		-	employment. A peace officer who is a participating ~~member of the law enforcementpublic~~
92		-	safety retirement plan created by this chapter ~~who begins employment after August 1, 2005, is H. B. NO. 1419 - PAGE 3~~
93		-	ineligible to participate concurrently in ~~any other retirement plan administered by the public~~
94		-	employees retirement system.
95		-	14.16."Permanent employee" means an employee whose services are not limited in duration ~~and~~
96		-	who is filling an approved and regularly funded position in an eligible ~~governmental unit, and is~~
97		-	employed twenty hours or more per week and at least ~~twenty weeks each year of~~
98		-	employment.
	186	+	12.14."Participating member" means an eligible employee who through payment into the
	187	+	plan has established a claim against the plan.
	188	+	13.15."Peace officer" means a participating member who is a peace officer as defined in
	189	+	section 12-63-01 and is employed as a peace officer by the state, except by the
	190	+	highway patrol for members of the retirement plan created under chapter 39-03.1, or is
	191	+	employed by a political subdivision and, notwithstanding subsection 14, for persons
	192	+	employed after August 1, 2005, is employed thirty-two hours or more per week and at
	193	+	least twenty weeks each year of employment. A peace officer who is a participating
	194	+	member of the law enforcementpublic safety retirement plan created by this chapter
	195	+	who begins employment after August 1, 2005, is ineligible to participate concurrently in
	196	+	any other retirement plan administered by the public employees retirement system.
	197	+	14.16."Permanent employee" means an employee whose services are not limited in duration
	198	+	and who is filling an approved and regularly funded position in an eligible
	199	+	governmental unit, and is employed twenty hours or more per week and at least
	200	+	twenty weeks each year of employment.
99	201		15.17."Prior service" means service or employment before July 1, 1966.
100		-	16.18."Prior service credit" means such credit toward a retirement benefit as the retirement board
101		-	may determine under the provisions of this chapter.
102		-	17.19."Public employees retirement system" means the retirement plan and program established by
103		-	this chapter.
104		-	18.20."Retirement" means the acceptance of a retirement allowance under this chapter upon either
105		-	termination of employment or termination of participation in the retirement plan.
106		-	19.21."Retirement board" or "board" means the governing authority created under section 54-52-03.
107		-	20.22."Seasonal employee" means a participating member who does not work twelve months a
108		-	year.
	202	+	16.18."Prior service credit" means such credit toward a retirement benefit as the retirement
	203	+	board may determine under the provisions of this chapter.
	204	+	17.19."Public employees retirement system" means the retirement plan and program
	205	+	established by this chapter.
	206	+	18.20."Retirement" means the acceptance of a retirement allowance under this chapter upon
	207	+	either termination of employment or termination of participation in the retirement plan.
	208	+	19.21."Retirement board" or "board" means the governing authority created under section
	209	+	54-52-03.
	210	+	20.22."Seasonal employee" means a participating member who does not work twelve
	211	+	months a year.
109	212		21.23."Service" means employment on or after July 1, 1966.
110		-	22.24."Service benefit" means the credit toward retirement benefits as determined by the retirement
111		-	board under the provisions of this chapter.
112		-	23.25."Temporary employee" means an employee who is not eligible to participate as a permanent
113		-	employee, who is at least eighteen years old and not actively contributing to another
114		-	employer-sponsored pension fund, and, if employed by a school district, occupies a
115		-	noncertified teacher's position.
116		-	24.26."Wages" and "salaries" means the member's earnings in eligible employment under this
117		-	chapter reported as salary on the member's federal income tax withholding statements plus
118		-	any salary reduction or salary deferral amounts under 26 U.S.C. 125, 401(k), 403(b), 414(h),
119		-	or 457. "Salary" does not include fringe benefits such as payments for unused sick leave,
120		-	personal leave, vacation leave paid in a lump sum, overtime, housing allowances,
121		-	transportation expenses, early retirement incentive pay, severance pay, medical insurance,
122		-	workforce safety and insurance benefits, disability insurance premiums or benefits, or salary
123		-	received by a member in lieu of previously employer-provided fringe benefits under an
124		-	agreement between the member and participating employer. Bonuses may be considered as
125		-	salary under this section if reported and annualized pursuant to rules adopted by the board.
126		-	SECTION 2. AMENDMENT. Section 54-52-02.1 of the North Dakota Century Code is amended and
127		-	reenacted as follows:
128		-	54-52-02.1. Political subdivisions authorized to join public employees retirement system.
129		-	1.A political subdivision may, on behalf of its permanent employees, on behalf of its peace
130		-	officers, firefighters, dispatchers, emergency medical services personnel, and correctional
131		-	officers separately from its other employees, and permanent noncertified employees only in
132		-	the case of school districts, enter agreements with the retirement board for the purpose of
133		-	extending the benefits of the public employees retirement system, as provided in this chapter,
134		-	to those employees. The agreement may, in accordance with this chapter, contain provisions
135		-	relating to benefits, contributions, effective date, modification, administration, and other
136		-	appropriate provisions as the retirement board and the political subdivision agree upon, but
137		-	the agreement must provide: H. B. NO. 1419 - PAGE 4
138		-	a.The political subdivision will contribute on behalf of each eligible employee an amount
139		-	equal to that provided in section 54-52-06 or 54-52-06.3 for peace officers, firefighters,
140		-	dispatchers, emergency medical services personnel, and correctional officers
141		-	participating separately from other political subdivision employees.
	213	+	22.24."Service benefit" means the credit toward retirement benefits as determined by the
	214	+	retirement board under the provisions of this chapter.
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	247	+	23.25."Temporary employee" means an employee who is not eligible to participate as a
	248	+	permanent employee, who is at least eighteen years old and not actively contributing
	249	+	to another employer-sponsored pension fund, and, if employed by a school district,
	250	+	occupies a noncertified teacher's position.
	251	+	24.26."Wages" and "salaries" means the member's earnings in eligible employment under
	252	+	this chapter reported as salary on the member's federal income tax withholding
	253	+	statements plus any salary reduction or salary deferral amounts under 26 U.S.C. 125,
	254	+	401(k), 403(b), 414(h), or 457. "Salary" does not include fringe benefits such as
	255	+	payments for unused sick leave, personal leave, vacation leave paid in a lump sum,
	256	+	overtime, housing allowances, transportation expenses, early retirement incentive pay,
	257	+	severance pay, medical insurance, workforce safety and insurance benefits, disability
	258	+	insurance premiums or benefits, or salary received by a member in lieu of previously
	259	+	employer-provided fringe benefits under an agreement between the member and
	260	+	participating employer. Bonuses may be considered as salary under this section if
	261	+	reported and annualized pursuant to rules adopted by the board.
	262	+	SECTION 2. AMENDMENT. Section 54-52-02.1 of the North Dakota Century Code is
	263	+	amended and reenacted as follows:
	264	+	54-52-02.1. Political subdivisions authorized to join public employees retirement
	265	+	system.
	266	+	1.A political subdivision may, on behalf of its permanent employees, on behalf of its
	267	+	peace officers, firefighters, dispatchers, emergency medical services personnel, and
	268	+	correctional officers separately from its other employees, and permanent noncertified
	269	+	employees only in the case of school districts, enter agreements with the retirement
	270	+	board for the purpose of extending the benefits of the public employees retirement
	271	+	system, as provided in this chapter, to those employees. The agreement may, in
	272	+	accordance with this chapter, contain provisions relating to benefits, contributions,
	273	+	effective date, modification, administration, and other appropriate provisions as the
	274	+	retirement board and the political subdivision agree upon, but the agreement must
	275	+	provide:
	276	+	a.The political subdivision will contribute on behalf of each eligible employee an
	277	+	amount equal to that provided in section 54-52-06 or 54-52-06.3 for peace
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	311	+	officers, firefighters, dispatchers, emergency medical services personnel, and
	312	+	correctional officers participating separately from other political subdivision
	313	+	employees.
142	314		b.A portion of the moneys paid by the political subdivision may be used to pay
143	315		administrative expenses of the retirement board.
144		-	2.Notwithstanding any other provision of law, a political subdivision having an existing police,
145		-	dispatcher, emergency medical services personnel, or firefighter pension plan may merge that
146		-	plan into the public employees retirement system under rules adopted by and in a manner
147		-	determined by the board.
148		-	3.Notwithstanding any other provision of this chapter, a political subdivision of this state not
149		-	currently participating in the public employees retirement system may not become a
150		-	participant in the retirement system until an actuarial study is performed under the direction of
151		-	the board to calculate the required employer contribution for any past service liability and the
152		-	required employer contribution must be an amount determined sufficient to amortize and fund
153		-	any past service liability over a period not to exceed thirty years as determined by the board.
154		-	Any fees incurred in performing the actuarial study must be paid for by the political subdivision
155		-	in a manner determined by the board.
156		-	SECTION 3. AMENDMENT. Section 54-52-02.15 of the North Dakota Century Code is amended
157		-	and reenacted as follows:
158		-	54-52-02.15. Public employees retirement system main plan - Closure to new hires - Multiple
159		-	plan membership.
	316	+	2.Notwithstanding any other provision of law, a political subdivision having an existing
	317	+	police, dispatcher, emergency medical services personnel, or firefighter pension plan
	318	+	may merge that plan into the public employees retirement system under rules adopted
	319	+	by and in a manner determined by the board.
	320	+	3.Notwithstanding any other provision of this chapter, a political subdivision of this state
	321	+	not currently participating in the public employees retirement system may not become
	322	+	a participant in the retirement system until an actuarial study is performed under the
	323	+	direction of the board to calculate the required employer contribution for any past
	324	+	service liability and the required employer contribution must be an amount determined
	325	+	sufficient to amortize and fund any past service liability over a period not to exceed
	326	+	thirty years as determined by the board. Any fees incurred in performing the actuarial
	327	+	study must be paid for by the political subdivision in a manner determined by the
	328	+	board.
	329	+	SECTION 3. AMENDMENT. Section 54-52-02.15 of the North Dakota Century Code is
	330	+	amended and reenacted as follows:
	331	+	54-52-02.15. Public employees retirement system main plan - Closure to new hires -
	332	+	Multiple plan membership.
160	333		1.Under this section "eligible employee" means a permanent employee who:
161	334		a.Meets all the eligibility requirements set by this chapter;
162	335		b.Is at least eighteen years of age;
163	336		c.Becomes a participating member after December 31, 2024; and
164	337		d.Is not eligible to participate in the law enforcementpublic safety plan, judges' plan,
165		-	highway patrol plan, teachers' fund for retirement plan, or alternative retirement program
166		-	established under section 15-10-17 for university system employees.
167		-	2.Effective January 1, 2025, the public employees retirement system defined benefit main plan
168		-	maintained for employees is closed to new eligible employees. However, an employee who
169		-	becomes a participating or deferred member under this chapter before January 1, 2025,
170		-	remains in the defined benefit retirement plan under this chapter, regardless of being rehired
171		-	after December 31, 2024.
	338	+	highway patrol plan, teachers' fund for retirement plan, or alternative retirement
	339	+	program established under section 15-10-17 for university system employees.
	340	+	2.Effective January 1, 2025, the public employees retirement system defined benefit
	341	+	main plan maintained for employees is closed to new eligible employees. However, an
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	375	+	employee who becomes a participating or deferred member under this chapter before
	376	+	January 1, 2025, remains in the defined benefit retirement plan under this chapter,
	377	+	regardless of being rehired after December 31, 2024.
172	378		3.Except as otherwise provided under this section, effective January 1, 2025, an eligible
173	379		employee who begins employment with an employer shall participate in the defined
174		-	contribution retirement plan under chapter 54-52.6 as provided under section 54-52.6-02.1.
	380	+	contribution retirement plan under chapter 54-52.6 as provided under section
	381	+	54-52.6-02.1.
175	382		4.This section does not impact an employee to the extent the employee is a participating
176		-	member in one or more of the following enumerated retirement plans: law enforcementpublic
177		-	safety plan, judges' plan, highway patrol plan, teachers' fund for retirement plan, or alternative
178		-	retirement program established under section 15-10-17 for university system employees.
179		-	a.A participating or deferred member in the defined contribution retirement plan under
180		-	chapter 54-52.6 who becomes eligible to participate in a plan enumerated under this
181		-	subsection is eligible to participate in the retirement plan enumerated under this
182		-	subsection. H. B. NO. 1419 - PAGE 5
183		-	b.A participating member of a retirement plan enumerated under this subsection who
184		-	becomes an eligible employee is not eligible to participate in the defined benefit
185		-	retirement plan under this chapter but instead participates in the defined contribution
186		-	retirement plan under chapter 54-52.6. However, this subdivision does not apply to an
187		-	individual who before January 1, 2025, is a participating or a deferred member under this
188		-	chapter, as that individual continues to participate in the defined benefit retirement plan
189		-	under this chapter.
	383	+	member in one or more of the following enumerated retirement plans: law
	384	+	enforcementpublic safety plan, judges' plan, highway patrol plan, teachers' fund for
	385	+	retirement plan, or alternative retirement program established under section 15-10-17
	386	+	for university system employees.
	387	+	a.A participating or deferred member in the defined contribution retirement plan
	388	+	under chapter 54-52.6 who becomes eligible to participate in a plan enumerated
	389	+	under this subsection is eligible to participate in the retirement plan enumerated
	390	+	under this subsection.
	391	+	b.A participating member of a retirement plan enumerated under this subsection
	392	+	who becomes an eligible employee is not eligible to participate in the defined
	393	+	benefit retirement plan under this chapter but instead participates in the defined
	394	+	contribution retirement plan under chapter 54-52.6. However, this subdivision
	395	+	does not apply to an individual who before January 1, 2025, is a participating or a
	396	+	deferred member under this chapter, as that individual continues to participate in
	397	+	the defined benefit retirement plan under this chapter.
190	398		5.The board shall adopt rules to implement this section.
191		-	SECTION 4. AMENDMENT. Section 54-52-06.3 of the North Dakota Century Code is ~~amended and~~
192		-	reenacted as follows:
193		-	54-52-06.3. Contribution by peace officers, firefighters, dispatchers, emergency ~~medical~~
194		-	services personnel, and correctional officers employed by political subdivisions ~~- Employer~~
195		-	contribution.
	399	+	SECTION 4. AMENDMENT. Section 54-52-06.3 of the North Dakota Century Code is
	400	+	amended and reenacted as follows:
	401	+	54-52-06.3. Contribution by peace officers, firefighters, dispatchers, emergency
	402	+	medical services personnel, and correctional officers employed by political subdivisions
	403	+	- Employer contribution.
196	404		1.Each peace officer, firefighter, dispatcher, emergency medical services personnel, or
197		-	correctional officer employed by a political subdivision that enters an agreement with the
198		-	retirement board on behalf of its peace officers, firefighters, dispatchers, emergency medical
199		-	services personnel, and correctional officers separately from its other employees and who is a
200		-	member of the public employees retirement system is assessed and shall pay monthly four
201		-	percent of the employee's monthly salary. Peace officer, firefighter, dispatcher, emergency
202		-	medical services personnel, or correctional officer contributions increase by one-half of one
203		-	percent of the member's monthly salary beginning with the monthly reporting period of
204		-	January 2012, and with an additional increase of one-half of one percent, beginning with the
205		-	monthly reporting period of January 2013, and with an additional increase of one-half of one
206		-	percent, beginning with the monthly reporting period of January 2014. The assessment must
207		-	be deducted and retained out of the employee's salary in equal monthly installments.
208		-	2.The peace officer's, firefighter's, dispatcher's, emergency medical services personnel's, or
209		-	correctional officer's employer shall contribute an amount determined by the board to be
210		-	actuarially required to support the level of benefits specified in section 54-52-17. If the peace
211		-	officer's, firefighter's, dispatcher's, emergency medical services personnel's, or correctional
212		-	officer's assessment is paid by the employer under subsection 3 of section 54-52-05, the
213		-	employer shall contribute, in addition, an amount equal to the required peace officer's,
214		-	firefighter's, dispatcher's, emergency medical services personnel's, or correctional officer's
215		-	assessment.
216		-	SECTION 5. AMENDMENT. Section 54-52-06.4 of the North Dakota Century Code is amended and
217		-	reenacted as follows:
218		-	54-52-06.4. Contribution by peace officers and dispatchers employed by the state or security
219		-	officers employed by the national guard - Employer contribution. (Retroactive application -
220		-	See note )
221		-	1.a.Each peace officer employed by the bureau of criminal investigation who is a member of
222		-	the public employees retirement system is assessed and shall pay monthly four percent
223		-	of the employee's monthly salary. Peace officer contributions increase by one percent of
224		-	the member's monthly salary beginning with the monthly reporting period of
225		-	January 2012; with an additional increase of one percent, beginning with the reporting
226		-	period of January 2013; with an additional increase of one percent, beginning with the
227		-	reporting period of January 2024; and with an additional increase of one percent,
228		-	beginning with the reporting period of January 2025.
229		-	b.Each dispatcher and peace officer employed by the state, other than a peace officer
230		-	employed by the bureau of criminal investigation, who is a member of the public H. B. NO. 1419 - PAGE 6
231		-	employees retirement system is assessed and shall pay six percent of the employee's
232		-	monthly salary.
233		-	c.Effective August 1, 2015, each national guard security officer who is a member of the
234		-	public employee's retirement system is assessed and monthly shall pay six percent of the
235		-	employee's monthly salary. National guard security officer contributions decrease by
236		-	one-half of one percent of the member's monthly salary beginning with the monthly
237		-	reporting period of January 2016.
	405	+	correctional officer employed by a political subdivision that enters an agreement with
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	439	+	the retirement board on behalf of its peace officers, firefighters, dispatchers,
	440	+	emergency medical services personnel, and correctional officers separately from its
	441	+	other employees and who is a member of the public employees retirement system is
	442	+	assessed and shall pay monthly four percent of the employee's monthly salary. Peace
	443	+	officer, firefighter, dispatcher, emergency medical services personnel, or correctional
	444	+	officer contributions increase by one-half of one percent of the member's monthly
	445	+	salary beginning with the monthly reporting period of January 2012, and with an
	446	+	additional increase of one-half of one percent, beginning with the monthly reporting
	447	+	period of January 2013, and with an additional increase of one-half of one percent,
	448	+	beginning with the monthly reporting period of January 2014. The assessment must be
	449	+	deducted and retained out of the employee's salary in equal monthly installments.
	450	+	2.The peace officer's, firefighter's, dispatcher's, emergency medical services
	451	+	personnel's, or correctional officer's employer shall contribute an amount determined
	452	+	by the board to be actuarially required to support the level of benefits specified in
	453	+	section 54-52-17. If the peace officer's, firefighter's, dispatcher's, emergency medical
	454	+	services personnel's, or correctional officer's assessment is paid by the employer
	455	+	under subsection 3 of section 54-52-05, the employer shall contribute, in addition, an
	456	+	amount equal to the required peace officer's, firefighter's, dispatcher's, emergency
	457	+	medical services personnel's, or correctional officer's assessment.
	458	+	SECTION 5. AMENDMENT. Section 54-52-06.4 of the North Dakota Century Code is
	459	+	amended and reenacted as follows:
	460	+	54-52-06.4. Contribution by peace officers and dispatchers employed by the state or
	461	+	security officers employed by the national guard - Employer contribution. (Retroactive
	462	+	application - See note )
	463	+	1.a.Each peace officer employed by the bureau of criminal investigation who is a
	464	+	member of the public employees retirement system is assessed and shall pay
	465	+	monthly four percent of the employee's monthly salary. Peace officer
	466	+	contributions increase by one percent of the member's monthly salary beginning
	467	+	with the monthly reporting period of January 2012; with an additional increase of
	468	+	one percent, beginning with the reporting period of January 2013; with an
	469	+	additional increase of one percent, beginning with the reporting period of
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	503	+	January 2024; and with an additional increase of one percent, beginning with the
	504	+	reporting period of January 2025.
	505	+	b.Each dispatcher and peace officer employed by the state, other than a peace
	506	+	officer employed by the bureau of criminal investigation, who is a member of the
	507	+	public employees retirement system is assessed and shall pay six percent of the
	508	+	employee's monthly salary.
	509	+	c.Effective August 1, 2015, each national guard security officer who is a member of
	510	+	the public employee's retirement system is assessed and monthly shall pay
	511	+	six percent of the employee's monthly salary. National guard security officer
	512	+	contributions decrease by one-half of one percent of the member's monthly
	513	+	salary beginning with the monthly reporting period of January 2016.
238	514		d.The assessment under this subsection must be deducted and retained out of the
239	515		employee's salary in equal monthly installments.
240		-	2.The employer of a dispatcher or peace officer employed by the state or national guard security
241		-	officer shall contribute an amount determined by the board to be actuarially required to
242		-	support the level of benefits specified in section 54-52-17. The employer's contribution must
243		-	be paid from funds appropriated for salary or from any other funds available for such
244		-	purposes. If the dispatcher's, peace officer's, or security officer's assessment is paid by the
245		-	employer under subsection 3 of section 54-52-05, the employer shall contribute, in addition,
246		-	an amount equal to the required dispatcher's, peace officer's, or security officer's assessment.
247		-	SECTION 6. AMENDMENT. Section 54-52-17 of the North Dakota Century Code is amended and
248		-	reenacted as follows:
	516	+	2.The employer of a dispatcher or peace officer employed by the state or national guard
	517	+	security officer shall contribute an amount determined by the board to be actuarially
	518	+	required to support the level of benefits specified in section 54-52-17. The employer's
	519	+	contribution must be paid from funds appropriated for salary or from any other funds
	520	+	available for such purposes. If the dispatcher's, peace officer's, or security officer's
	521	+	assessment is paid by the employer under subsection 3 of section 54-52-05, the
	522	+	employer shall contribute, in addition, an amount equal to the required dispatcher's,
	523	+	peace officer's, or security officer's assessment.
	524	+	SECTION 6. AMENDMENT. Section 54-52-17 of the North Dakota Century Code is
	525	+	amended and reenacted as follows:
249	526		54-52-17. Formulation of plan. (Retroactive application - See note)
250		-	Participating members shall receive benefits according to this section and according to rules
251		-	adopted by the board, not inconsistent with this chapter. No personAn individual is not entitled to
252		-	receive a prior service benefit if the personindividual was not continuously employed by a governmental
253		-	unit in North Dakota for a period of not less than two years immediately prior tobefore eligibility for
254		-	retirement.
255		-	1.Participating members shall receive credit for full-time employment or its equivalent from the
256		-	date they attain eligibility until their normal retirement date, postponed retirement date, or early
257		-	retirement date, as defined in this section. Part-time employment will be recognized as
258		-	full-time employment on a prorated basis as the board may prescribe.
259		-	2.Retirement benefits are calculated from the participating member's final average salary, which
260		-	is the average of the highest salary received by the member for any thirty-six months
261		-	employed during the last one hundred twenty months of employment. For members who
262		-	terminate employment on or after August 1, 2010, final average salary is the average of the
263		-	highest salary received by the member for any thirty-six months employed during the last one
264		-	hundred eighty months of employment. For members who terminate employment between
265		-	July 31, 2005, and August 1, 2010, final average salary is the average of the highest salary
266		-	received by the member for any thirty-six months employed during the period for which the
267		-	board has appropriate and accurate salary records on the board's electronic database, but
268		-	that period may not be more than the last one hundred eighty months of employment. For
269		-	members who terminate employment after December 31, 2019, final average salary is the
270		-	higher of the final average salary calculated on December 31, 2019, or the average salary
271		-	earned in the three highest periods of twelve consecutive months employed during the last
272		-	one hundred eighty months of employment. Months without earnings are excluded for the
273		-	purpose of computing an average. If the participating member has worked for less than
274		-	thirty-six months at the normal retirement date, the final average salary is the average salary
275		-	for the total months of employment.
	527	+	Participating members shall receive benefits according to this section and according to
	528	+	rules adopted by the board, not inconsistent with this chapter. No personAn individual is not
	529	+	entitled to receive a prior service benefit if the personindividual was not continuously employed
	530	+	by a governmental unit in North Dakota for a period of not less than two years immediately prior
	531	+	tobefore eligibility for retirement.
	532	+	1.Participating members shall receive credit for full-time employment or its equivalent
	533	+	from the date they attain eligibility until their normal retirement date, postponed
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	567	+	retirement date, or early retirement date, as defined in this section. Part-time
	568	+	employment will be recognized as full-time employment on a prorated basis as the
	569	+	board may prescribe.
	570	+	2.Retirement benefits are calculated from the participating member's final average
	571	+	salary, which is the average of the highest salary received by the member for any
	572	+	thirty-six months employed during the last one hundred twenty months of employment.
	573	+	For members who terminate employment on or after August 1, 2010, final average
	574	+	salary is the average of the highest salary received by the member for any thirty-six
	575	+	months employed during the last one hundred eighty months of employment. For
	576	+	members who terminate employment between July 31, 2005, and August 1, 2010, final
	577	+	average salary is the average of the highest salary received by the member for any
	578	+	thirty-six months employed during the period for which the board has appropriate and
	579	+	accurate salary records on the board's electronic database, but that period may not be
	580	+	more than the last one hundred eighty months of employment. For members who
	581	+	terminate employment after December 31, 2019, final average salary is the higher of
	582	+	the final average salary calculated on December 31, 2019, or the average salary
	583	+	earned in the three highest periods of twelve consecutive months employed during the
	584	+	last one hundred eighty months of employment. Months without earnings are excluded
	585	+	for the purpose of computing an average. If the participating member has worked for
	586	+	less than thirty-six months at the normal retirement date, the final average salary is the
	587	+	average salary for the total months of employment.
276	588		3.Retirement dates are defined as follows:
277	589		a.Normal retirement date, except for a national guard security officer or firefighter, a
278		-	firefighter employed by a political subdivision, adispatcher or peace officer employed by H. B. NO. 1419 - PAGE 7
279		-	the state, or a firefighter, dispatcher, emergency medical services personnel, peace
280		-	officer, or correctional officer employed by a political subdivision, is:
281		-	(1)The first day of the month next following the month in which the member attains the
282		-	age of sixty-five years; or
283		-	(2)When the member has a combined total of years of service credit and years of age
284		-	equal to eighty-five and has not received a retirement benefit under this chapter.
285		-	b.Normal retirement date for members first enrolled after December 31, 2015, except for a
286		-	national guard security officer or firefighter, a firefighter employed by a political
287		-	subdivision, adispatcher or peace officer employed by the state, a firefighter, dispatcher,
288		-	emergency medical services personnel, peace officer, or correctional officer employed by
289		-	a political subdivision, or a supreme court or district court judge, is:
290		-	(1)The first day of the month next following the month in which the member attains the
291		-	age of sixty-five years; or
292		-	(2)When the member has a combined total of years of service credit and years of age
293		-	equal to ninety and the member attains a minimum age of sixty and has not
	590	+	firefighter employed by a political subdivision, adispatcher or peace officer
	591	+	employed by the state, or a firefighter, dispatcher, emergency medical services
	592	+	personnel, peace officer, or correctional officer employed by a political
	593	+	subdivision, is:
	594	+	(1)The first day of the month next following the month in which the member
	595	+	attains the age of sixty-five years; or
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	627	+	(2)When the member has a combined total of years of service credit and years
	628	+	of age equal to eighty-five and has not received a retirement benefit under
	629	+	this chapter.
	630	+	b.Normal retirement date for members first enrolled after December 31, 2015,
	631	+	except for a national guard security officer or firefighter, a firefighter employed by
	632	+	a political subdivision, adispatcher or peace officer employed by the state, a
	633	+	firefighter, dispatcher, emergency medical services personnel, peace officer, or
	634	+	correctional officer employed by a political subdivision, or a supreme court or
	635	+	district court judge, is:
	636	+	(1)The first day of the month next following the month in which the member
	637	+	attains the age of sixty-five years; or
	638	+	(2)When the member has a combined total of years of service credit and years
	639	+	of age equal to ninety and the member attains a minimum age of sixty and
	640	+	has not received a retirement benefit under this chapter.
	641	+	c.Normal retirement date for a national guard security officer or firefighter is:
	642	+	(1)The first day of the month next following the month in which the national
	643	+	guard security officer or firefighter attains the age of fifty-five years and has
	644	+	completed at least three eligible years of employment; or
	645	+	(2)When the national guard security officer or firefighter has a combined total
	646	+	of years of service credit and years of age equal to eighty-five and has not
294	647		received a retirement benefit under this chapter.
295		-	c.Normal retirement date for a national guard security officer or firefighter is:
296		-	(1)The first day of the month next following the month in which the national guard
297		-	security officer or firefighter attains the age of fifty-five years and has completed at
	648	+	d.Normal retirement date for a dispatcher, emergency medical services personnel,
	649	+	peace officer, firefighter, or correctional officer employed by a political subdivision
	650	+	is:
	651	+	(1)The first day of the month next following the month in which the dispatcher,
	652	+	emergency medical services personnel, peace officer, firefighter, or
	653	+	correctional officer attains the age of fifty-five years and has completed at
298	654		least three eligible years of employment; or
299		-	(2)When the national guard security officer or firefighter has a combined total of years
300		-	of service credit and years of age equal to eighty-five and has not received a
	655	+	(2)When the dispatcher, emergency medical services personnel, peace officer,
	656	+	firefighter, or correctional officer has a combined total of years of service
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	689	+	credit and years of age equal to eighty-five and has not received a
301	690		retirement benefit under this chapter.
302		-	d.Normal retirement date for a dispatcher, emergency medical services personnel, peace
303		-	officer, firefighter, or correctional officer employed by a political subdivision is:
304		-	(1)The first day of the month next following the month in which the dispatcher,
305		-	emergency medical services personnel, peace officer, firefighter, or correctional
306		-	officer attains the age of fifty-five years and has completed at least three eligible
	691	+	e.(1)Normal retirement date for a peace officer employed by the bureau of
	692	+	criminal investigation is:
	693	+	(a)[1]For a member employed before August 1, 2023, the first day of
	694	+	the month next following the month in which the peace officer
	695	+	attains the age of fifty-five years and has completed at least
	696	+	three eligible years of employment; and
	697	+	[2]For a member employed after July 31, 2023, the first day of the
	698	+	month next following the month in which the peace officer attains
	699	+	the age of fifty-five years and has completed at least ten eligible
307	700		years of employment; or
308		-	(2)When the dispatcher, emergency medical services personnel, peace officer,
309		-	firefighter, or correctional officer has a combined total of years of service credit and
310		-	years of age equal to eighty-five and has not received a retirement benefit under
311		-	this chapter.
312		-	e.(1)Normal retirement date for a peace officer employed by the bureau of criminal
313		-	investigation is:
314		-	(a)[1]For a member employed before August 1, 2023, the first day of the
315		-	month next following the month in which the peace officer attains the age
316		-	of fifty-five years and has completed at least three eligible years of
317		-	employment; and
318		-	[2]For a member employed after July 31, 2023, the first day of the month
319		-	next following the month in which the peace officer attains the age of
320		-	fifty-five years and has completed at least ten eligible years of
321		-	employment; or H. B. NO. 1419 - PAGE 8
322		-	(b)When the peace officer has a combined total of years of service credit and
323		-	years of age equal to eighty-five and has not received a retirement benefit
324		-	under this chapter.
325		-	(2)Normal retirement date for a dispatcher or peace officer employed by the state,
326		-	other than a peace officer employed by the bureau of criminal investigation, is:
327		-	(a)The first day of the month next following the month in which the dispatcher or
328		-	peace officer attains the age of fifty-five years and has completed at least
329		-	three eligible years of employment; or
330		-	(b)When the dispatcher or peace officer has a combined total of years of service
331		-	credit and years of age equal to eighty-five and has not received a retirement
332		-	benefit under this chapter.
333		-	f.Postponed retirement date is the first day of the month next following the month in which
334		-	the member, on or after July 1, 1977, actually severs or has severed the member's
335		-	employment after reaching the normal retirement date.
336		-	g.(1)Early retirement date, except for a national guard security officer or firefighter, a
337		-	dispatcher, emergency medical services personnel, firefighter, peace officer, or
338		-	correctional officer employed by a political subdivision, or a dispatcher or peace
339		-	officer employed by the state, is the first day of the month next following the month
340		-	in which the member attains the age of fifty-five years and has completed three
341		-	years of eligible employment.
342		-	(2)For a national guard security officer or firefighter, early retirement date is the first
343		-	day of the month next following the month in which the national guard security
344		-	officer or firefighter attains the age of fifty years and has completed at least three
345		-	years of eligible employment.
346		-	(3)For a dispatcher or peace officer employed by the state, other than a peace officer
347		-	employed by the bureau of criminal investigation, or a dispatcher, emergency
348		-	medical services personnel, firefighter, peace officer, or correctional officer
349		-	employed by a political subdivision, early retirement date is the first day of the
350		-	month next following the month in which the dispatcher, emergency medical
351		-	services personnel, peace officer, firefighter, or correctional officer attains the age of
352		-	fifty years and has completed at least three years of eligible employment.
	701	+	(b)When the peace officer has a combined total of years of service credit
	702	+	and years of age equal to eighty-five and has not received a
	703	+	retirement benefit under this chapter.
	704	+	(2)Normal retirement date for a dispatcher or peace officer employed by the
	705	+	state, other than a peace officer employed by the bureau of criminal
	706	+	investigation, is:
	707	+	(a)The first day of the month next following the month in which the
	708	+	dispatcher or peace officer attains the age of fifty-five years and has
	709	+	completed at least three eligible years of employment; or
	710	+	(b)When the dispatcher or peace officer has a combined total of years of
	711	+	service credit and years of age equal to eighty-five and has not
	712	+	received a retirement benefit under this chapter.
	713	+	f.Postponed retirement date is the first day of the month next following the month
	714	+	in which the member, on or after July 1, 1977, actually severs or has severed the
	715	+	member's employment after reaching the normal retirement date.
	716	+	g.(1)Early retirement date, except for a national guard security officer or
	717	+	firefighter, a dispatcher, emergency medical services personnel, firefighter,
	718	+	peace officer, or correctional officer employed by a political subdivision, or a
	719	+	dispatcher or peace officer employed by the state, is the first day of the
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	753	+	month next following the month in which the member attains the age of
	754	+	fifty-five years and has completed three years of eligible employment.
	755	+	(2)For a national guard security officer or firefighter, early retirement date is the
	756	+	first day of the month next following the month in which the national guard
	757	+	security officer or firefighter attains the age of fifty years and has completed
	758	+	at least three years of eligible employment.
	759	+	(3)For a dispatcher or peace officer employed by the state, other than a peace
	760	+	officer employed by the bureau of criminal investigation, or a dispatcher,
	761	+	emergency medical services personnel, firefighter, peace officer, or
	762	+	correctional officer employed by a political subdivision, early retirement date
	763	+	is the first day of the month next following the month in which the dispatcher,
	764	+	emergency medical services personnel, peace officer, firefighter, or
	765	+	correctional officer attains the age of fifty years and has completed at least
	766	+	three years of eligible employment.
353	767		(4)For a peace officer employed by the bureau of criminal investigation, early
354		-	retirement date is the first day of the month next following the month in ~~which the~~
355		-	peace officer attains the age of fifty years and has completed at ~~least three years of~~
356		-	eligible employment.
	768	+	retirement date is the first day of the month next following the month in
	769	+	which the peace officer attains the age of fifty years and has completed at
	770	+	least three years of eligible employment.
357	771		h.Disability retirement date is the first day of the month after a member becomes
358		-	permanently and totally disabled, according to medical evidence called for under ~~the~~
359		-	rules of the board, and has completed at least one hundred eighty days of ~~eligible~~
360		-	employment. For supreme and district court judges, permanent and total ~~disability is~~
361		-	based solely on a judge's inability to perform judicial duties arising out ~~of physical or~~
362		-	mental impairment, as determined pursuant to rules adopted by the ~~board or as provided~~
363		-	by subdivision a of subsection 3 of section 27-23-03.
364		-	(1)A member is eligible to receive disability retirement benefits only if the ~~member~~
365		-	became disabled during the period of eligible employment and ~~applies for disability~~
366		-	retirement benefits within twelve months of the date the ~~member terminates~~
367		-	employment. ~~H. B. NO. 1419 - PAGE 9~~
	772	+	permanently and totally disabled, according to medical evidence called for under
	773	+	the rules of the board, and has completed at least one hundred eighty days of
	774	+	eligible employment. For supreme and district court judges, permanent and total
	775	+	disability is based solely on a judge's inability to perform judicial duties arising out
	776	+	of physical or mental impairment, as determined pursuant to rules adopted by the
	777	+	board or as provided by subdivision a of subsection 3 of section 27-23-03.
	778	+	(1)A member is eligible to receive disability retirement benefits only if the
	779	+	member became disabled during the period of eligible employment and
	780	+	applies for disability retirement benefits within twelve months of the date the
	781	+	member terminates employment.
368	782		(2)A member is eligible to continue to receive disability benefits as long as the
369		-	permanent and total disability continues and the member submits the necessary
370		-	documentation and undergoes medical testing required by the board, or for as long
371		-	as the member participates in a rehabilitation program required by the board, or
372		-	both. If the board determines a member no longer meets the eligibility definition, the
373		-	board may discontinue the disability retirement benefit. The board may pay the cost
374		-	of any medical testing or rehabilitation services the board deems necessary and
375		-	these payments are appropriated from the retirement fund for those purposes. A
376		-	member's receipt of disability benefits under this section is limited to receipt from
377		-	the fund to which the member was actively contributing at the time the member
	783	+	permanent and total disability continues and the member submits the
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	817	+	necessary documentation and undergoes medical testing required by the
	818	+	board, or for as long as the member participates in a rehabilitation program
	819	+	required by the board, or both. If the board determines a member no longer
	820	+	meets the eligibility definition, the board may discontinue the disability
	821	+	retirement benefit. The board may pay the cost of any medical testing or
	822	+	rehabilitation services the board deems necessary and these payments are
	823	+	appropriated from the retirement fund for those purposes. A member's
	824	+	receipt of disability benefits under this section is limited to receipt from the
	825	+	fund to which the member was actively contributing at the time the member
378	826		became disabled.
379	827		4.The board shall calculate retirement benefits as follows:
380		-	a.Normal retirement benefits for all retirees, except supreme and district court ~~judges, and~~
381		-	peace officers employed by the bureau of criminal investigation, and ~~other peace officers~~
382		-	employed by the state, reaching normal retirement date ~~equal an annual amount,~~
383		-	payable monthly, comprised of a service benefit and a ~~prior service benefit, as defined in~~
384		-	this chapter, which is determined as follows:
	828	+	a.Normal retirement benefits for all retirees, except supreme and district court
	829	+	judges, and peace officers employed by the bureau of criminal investigation, and
	830	+	other peace officers employed by the state, reaching normal retirement date
	831	+	equal an annual amount, payable monthly, comprised of a service benefit and a
	832	+	prior service benefit, as defined in this chapter, which is determined as follows:
385	833		(1)For members first enrolled:
386		-	(a)Before January 1, 2020, service benefit equals two percent of final average
387		-	salary multiplied by the number of years of service employment.
	834	+	(a)Before January 1, 2020, service benefit equals two percent of final
	835	+	average salary multiplied by the number of years of service
	836	+	employment.
388	837		(b)After December 31, 2019, service benefit equals one and seventy-five
389		-	hundredths percent of final average salary multiplied by the number of years
390		-	of service employment.
391		-	(2)Prior service benefit equals two percent of final average salary multiplied by the
392		-	number of years of prior service employment.
393		-	b.Normal retirement benefits for all supreme and district court judges under the public
394		-	employees retirement system reaching normal retirement date equal an annual amount,
395		-	payable monthly, comprised of a benefit as defined in this chapter, determined as follows:
396		-	(1)Benefits must be calculated from the time of appointment or election to the bench
397		-	and must equal three and one-half percent of final average salary multiplied by the
398		-	first ten years of judicial service, two and eighty hundredths percent of final average
399		-	salary multiplied by the second ten years of judicial service, and one and one-fourth
400		-	percent of final average salary multiplied by the number of years of judicial service
401		-	exceeding twenty years.
402		-	(2)Service benefits must include, in addition, an amount equal to the percent specified
403		-	in subdivision a of final average salary multiplied by the number of years of
404		-	nonjudicial employee service and employment.
	838	+	hundredths percent of final average salary multiplied by the number of
	839	+	years of service employment.
	840	+	(2)Prior service benefit equals two percent of final average salary multiplied by
	841	+	the number of years of prior service employment.
	842	+	b.Normal retirement benefits for all supreme and district court judges under the
	843	+	public employees retirement system reaching normal retirement date equal an
	844	+	annual amount, payable monthly, comprised of a benefit as defined in this
	845	+	chapter, determined as follows:
	846	+	(1)Benefits must be calculated from the time of appointment or election to the
	847	+	bench and must equal three and one-half percent of final average salary
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	881	+	multiplied by the first ten years of judicial service, two and eighty hundredths
	882	+	percent of final average salary multiplied by the second ten years of judicial
	883	+	service, and one and one-fourth percent of final average salary multiplied by
	884	+	the number of years of judicial service exceeding twenty years.
	885	+	(2)Service benefits must include, in addition, an amount equal to the percent
	886	+	specified in subdivision a of final average salary multiplied by the number of
	887	+	years of nonjudicial employee service and employment.
405	888		c.Normal retirement benefits for a peace officer employed by the bureau of criminal
406		-	investigation reaching the normal retirement date equals an annual amount, payable
407		-	monthly, comprised of a service benefit and a prior service benefit determined as follows:
408		-	(1)The first twenty years of credited service multiplied by three percent of final average
409		-	salary.
410		-	(2)For years in excess of twenty years of credited service multiplied by one and
411		-	seventy-five hundredths percent of final average salary. H. B. NO. 1419 - PAGE 10
412		-	d.Normal retirement benefits for a peace officer employed by the state, other than by the
413		-	bureau of criminal investigation, reaching the normal retirement date equals an annual
414		-	amount, payable monthly, comprised of a service benefit and a prior service benefit
	889	+	investigation reaching the normal retirement date equals an annual amount,
	890	+	payable monthly, comprised of a service benefit and a prior service benefit
415	891		determined as follows:
	892	+	(1)The first twenty years of credited service multiplied by three percent of final
	893	+	average salary.
	894	+	(2)For years in excess of twenty years of credited service multiplied by one
	895	+	and seventy-five hundredths percent of final average salary.
	896	+	d.Normal retirement benefits for a peace officer employed by the state, other than
	897	+	by the bureau of criminal investigation, reaching the normal retirement date
	898	+	equals an annual amount, payable monthly, comprised of a service benefit and a
	899	+	prior service benefit determined as follows:
416	900		(1)For members first enrolled:
417		-	(a)Before January 1, 2020, service benefit equals two percent of final average
418		-	salary multiplied by the number of years of service employment.
	901	+	(a)Before January 1, 2020, service benefit equals two percent of final
	902	+	average salary multiplied by the number of years of service
	903	+	employment.
419	904		(b)After December 31, 2019, service benefit equals one and seventy-five
420		-	hundredths percent of final average salary multiplied by the number of years
421		-	of service employment.
422		-	(2)Prior service benefit equals two percent of final average salary multiplied by the
423		-	number of years of prior service employment.
424		-	e.Postponed retirement benefits are calculated as for single life benefits for those members
425		-	who retired on or after July 1, 1977.
426		-	f.e.Early retirement benefits are calculated as for single life benefits accrued to the date of
427		-	termination of employment, but must be actuarially reduced to account for benefit
428		-	payments beginning before the normal retirement date, as determined under
429		-	subsection 3. Except for a national guard security officer or firefighter, a dispatcher,
430		-	emergency medical services personnel, firefighter, peace officer, or correctional officer
431		-	employed by a political subdivision, a dispatcher or peace officer employed by the state,
432		-	or a supreme court or district court judge, early retirement benefits for members first
433		-	enrolled after December 31, 2015, are calculated for single life benefits accrued to the
434		-	date of termination of employment, but must be reduced by fixed rate of eight percent per
435		-	year to account for benefit payments beginning before the normal retirement date. A
	905	+	hundredths percent of final average salary multiplied by the number of
	906	+	years of service employment.
	907	+	(2)Prior service benefit equals two percent of final average salary multiplied by
	908	+	the number of years of prior service employment.
	909	+	e.Postponed retirement benefits are calculated as for single life benefits for those
	910	+	members who retired on or after July 1, 1977.
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	943	+	f.e.Early retirement benefits are calculated as for single life benefits accrued to the
	944	+	date of termination of employment, but must be actuarially reduced to account for
	945	+	benefit payments beginning before the normal retirement date, as determined
	946	+	under subsection 3. Except for a national guard security officer or firefighter, a
	947	+	dispatcher, emergency medical services personnel, firefighter, peace officer, or
	948	+	correctional officer employed by a political subdivision, a dispatcher or peace
	949	+	officer employed by the state, or a supreme court or district court judge, early
	950	+	retirement benefits for members first enrolled after December 31, 2015, are
	951	+	calculated for single life benefits accrued to the date of termination of
	952	+	employment, but must be reduced by fixed rate of eight percent per year to
	953	+	account for benefit payments beginning before the normal retirement date. A
436	954		retiree, other than a supreme or district court judge, is eligible for early retirement
437		-	benefits only after having completed three years of eligible employment. A supreme or
438		-	district court judge retiree is eligible for early retirement benefits only after having
439		-	completed five years of eligible employment.
440		-	g.f.Except for supreme and district court judges, disability retirement benefits are twenty-five
441		-	percent of the member's final average salary. Disability retirement benefits for supreme
442		-	and district court judges are seventy percent of final average salary reduced by the
443		-	member's primary social security benefits and by any workforce safety and insurance
444		-	benefits paid. The minimum monthly disability retirement benefit under this section is one
445		-	hundred dollars.
446		-	5.Upon termination of employment after completing three years of eligible employment, except
447		-	for supreme and district court judges, who must complete five years of eligible employment,
448		-	but before normal retirement date, a member who does not elect to receive early retirement
449		-	benefits is eligible to receive deferred vested retirement benefits payable commencing on the
450		-	member's normal retirement date in one of the optional forms provided in subsection 9.
451		-	Members who have delayed or inadvertently failed to apply for retirement benefits to
452		-	commence on their normal retirement date may choose to receive either a lump sum payment
453		-	equal to the amount of missed payments, or an actuarial increase to the form of benefit the
454		-	member has selected, which increase must reflect the missed payments.
455		-	6.If before retiring a member dies after completing three years of eligible employment, except for
456		-	supreme and district court judges, who must have completed five years of eligible
457		-	employment, the board shall pay the member's account balance to the member's designated
458		-	beneficiary as provided in this subsection. If the member has designated an alternate
459		-	beneficiary with the surviving spouse's written consent, the board shall pay the member's
460		-	account balance to the named beneficiary. If the member has named more than one primary H. B. NO. 1419 - PAGE 11
461		-	beneficiary, the board shall pay the member's account balance to the named primary
462		-	beneficiaries in the percentages designated by the member or, if the member has not
463		-	designated a percentage for the beneficiaries, in equal percentages. If one or more of the
464		-	primary beneficiaries has predeceased the member, the board shall pay the predeceased
465		-	beneficiary's share to the remaining primary beneficiaries. If any beneficiary survives the
466		-	member, yet dies before distribution of the beneficiary's share, the beneficiary must be treated
467		-	as if the beneficiary predeceased the member. If there are no remaining primary beneficiaries,
468		-	the board shall pay the member's account balance to the contingent beneficiaries in the same
469		-	manner. If there are no remaining designated beneficiaries, the board shall pay the member's
470		-	account balance to the member's estate. If the member has not designated an alternate
471		-	beneficiary or the surviving spouse is the beneficiary, the surviving spouse of the member may
472		-	select a form of payment as follows:
473		-	a.If the member was a supreme or district court judge, the surviving spouse may select one
474		-	of the following optional forms of payment:
475		-	(1)A lump sum payment of the member's retirement account as of the date of death.
476		-	(2)Payments as calculated for the deceased member as if the member was of normal
477		-	retirement age at the date of death, payable until the spouse dies.
478		-	b.The surviving spouse of all other members may select one of the following options:
479		-	(1)A lump sum payment of the member's retirement account as of the date of death.
480		-	(2)Payment of a monthly retirement benefit equal to fifty percent of the deceased
481		-	member's accrued single life retirement benefits until the spouse dies.
482		-	(3)If the member dies on or after the member's normal retirement date, the payment of
483		-	a monthly retirement benefit equal to an amount that would have been paid to the
484		-	surviving spouse if the member had retired on the day of the member's death and
485		-	had selected a one hundred percent joint and survivor annuity, payable until the
486		-	spouse dies. A surviving spouse who received a benefit under this subsection as of
487		-	July 31, 1995, is entitled to the higher of that person's existing benefit or the
488		-	equivalent of the accrued benefit available under the one hundred percent joint and
489		-	survivor provision as if the deceased member were of normal retirement age, with
490		-	the increase payable beginning August 1, 1995.
491		-	7.If a member not coming under the provisions of subsection 6 terminates employment because
492		-	of death, permanent and total disability, or any voluntary or involuntary reason prior to
493		-	retirement, the member or the member's designated beneficiary is entitled to the member's
494		-	account balance at termination. The board automatically shall refund a member's account
495		-	balance if the member has completed less than three years of eligible employment, has an
496		-	account balance of less than one thousand dollars, and was not a supreme or district court
497		-	judge. If the member was a supreme or district court judge, the board automatically shall
498		-	refund a member's account balance if the member completed less than five years of eligible
499		-	employment. A member may waive the refund if the member submits a written statement to
500		-	the board, within thirty days after termination, requesting that the member's account balance
	955	+	benefits only after having completed three years of eligible employment. A
	956	+	supreme or district court judge retiree is eligible for early retirement benefits only
	957	+	after having completed five years of eligible employment.
	958	+	g.f.Except for supreme and district court judges, disability retirement benefits are
	959	+	twenty-five percent of the member's final average salary. Disability retirement
	960	+	benefits for supreme and district court judges are seventy percent of final
	961	+	average salary reduced by the member's primary social security benefits and by
	962	+	any workforce safety and insurance benefits paid. The minimum monthly
	963	+	disability retirement benefit under this section is one hundred dollars.
	964	+	5.Upon termination of employment after completing three years of eligible employment,
	965	+	except for supreme and district court judges, who must complete five years of eligible
	966	+	employment, but before normal retirement date, a member who does not elect to
	967	+	receive early retirement benefits is eligible to receive deferred vested retirement
	968	+	benefits payable commencing on the member's normal retirement date in one of the
	969	+	optional forms provided in subsection 9. Members who have delayed or inadvertently
	970	+	failed to apply for retirement benefits to commence on their normal retirement date
	971	+	may choose to receive either a lump sum payment equal to the amount of missed
	972	+	payments, or an actuarial increase to the form of benefit the member has selected,
	973	+	which increase must reflect the missed payments.
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	1007	+	6.If before retiring a member dies after completing three years of eligible employment,
	1008	+	except for supreme and district court judges, who must have completed five years of
	1009	+	eligible employment, the board shall pay the member's account balance to the
	1010	+	member's designated beneficiary as provided in this subsection. If the member has
	1011	+	designated an alternate beneficiary with the surviving spouse's written consent, the
	1012	+	board shall pay the member's account balance to the named beneficiary. If the
	1013	+	member has named more than one primary beneficiary, the board shall pay the
	1014	+	member's account balance to the named primary beneficiaries in the percentages
	1015	+	designated by the member or, if the member has not designated a percentage for the
	1016	+	beneficiaries, in equal percentages. If one or more of the primary beneficiaries has
	1017	+	predeceased the member, the board shall pay the predeceased beneficiary's share to
	1018	+	the remaining primary beneficiaries. If any beneficiary survives the member, yet dies
	1019	+	before distribution of the beneficiary's share, the beneficiary must be treated as if the
	1020	+	beneficiary predeceased the member. If there are no remaining primary beneficiaries,
	1021	+	the board shall pay the member's account balance to the contingent beneficiaries in
	1022	+	the same manner. If there are no remaining designated beneficiaries, the board shall
	1023	+	pay the member's account balance to the member's estate. If the member has not
	1024	+	designated an alternate beneficiary or the surviving spouse is the beneficiary, the
	1025	+	surviving spouse of the member may select a form of payment as follows:
	1026	+	a.If the member was a supreme or district court judge, the surviving spouse may
	1027	+	select one of the following optional forms of payment:
	1028	+	(1)A lump sum payment of the member's retirement account as of the date of
	1029	+	death.
	1030	+	(2)Payments as calculated for the deceased member as if the member was of
	1031	+	normal retirement age at the date of death, payable until the spouse dies.
	1032	+	b.The surviving spouse of all other members may select one of the following
	1033	+	options:
	1034	+	(1)A lump sum payment of the member's retirement account as of the date of
	1035	+	death.
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	1067	+	(2)Payment of a monthly retirement benefit equal to fifty percent of the
	1068	+	deceased member's accrued single life retirement benefits until the spouse
	1069	+	dies.
	1070	+	(3)If the member dies on or after the member's normal retirement date, the
	1071	+	payment of a monthly retirement benefit equal to an amount that would have
	1072	+	been paid to the surviving spouse if the member had retired on the day of
	1073	+	the member's death and had selected a one hundred percent joint and
	1074	+	survivor annuity, payable until the spouse dies. A surviving spouse who
	1075	+	received a benefit under this subsection as of July 31, 1995, is entitled to
	1076	+	the higher of that person's existing benefit or the equivalent of the accrued
	1077	+	benefit available under the one hundred percent joint and survivor provision
	1078	+	as if the deceased member were of normal retirement age, with the increase
	1079	+	payable beginning August 1, 1995.
	1080	+	7.If a member not coming under the provisions of subsection 6 terminates employment
	1081	+	because of death, permanent and total disability, or any voluntary or involuntary
	1082	+	reason prior to retirement, the member or the member's designated beneficiary is
	1083	+	entitled to the member's account balance at termination. The board automatically shall
	1084	+	refund a member's account balance if the member has completed less than three
	1085	+	years of eligible employment, has an account balance of less than one thousand
	1086	+	dollars, and was not a supreme or district court judge. If the member was a supreme
	1087	+	or district court judge, the board automatically shall refund a member's account
	1088	+	balance if the member completed less than five years of eligible employment. A
	1089	+	member may waive the refund if the member submits a written statement to the board,
	1090	+	within thirty days after termination, requesting that the member's account balance
501	1091		remain in the fund.
502		-	8.The surviving spouse of a member receiving retirement benefits must be the member's
503		-	primary beneficiary unless there is no surviving spouse or the surviving spouse designates an
504		-	alternate beneficiary in writing. If a member receiving retirement benefits or the member's
505		-	surviving spouse receiving retirement benefits dies before the total amount of benefits paid to
506		-	either or both equals the amount of the member's account balance at retirement, the
507		-	difference must be paid to the named beneficiary of the recipient or, if there is no named
508		-	beneficiary, to the recipient's estate. A benefit payment owed to the member, surviving spouse,
509		-	or alternate beneficiary which was not paid before the death of the member, surviving spouse, H. B. NO. 1419 - PAGE 12
510		-	or alternate beneficiary must be paid to the named beneficiary of the recipient or, if there is no
511		-	named beneficiary, to the recipient's estate.
512		-	9.The board shall adopt rules providing for the receipt of retirement benefits in the following
513		-	optional forms:
	1092	+	8.The surviving spouse of a member receiving retirement benefits must be the
	1093	+	member's primary beneficiary unless there is no surviving spouse or the surviving
	1094	+	spouse designates an alternate beneficiary in writing. If a member receiving retirement
	1095	+	benefits or the member's surviving spouse receiving retirement benefits dies before
	1096	+	the total amount of benefits paid to either or both equals the amount of the member's
	1097	+	account balance at retirement, the difference must be paid to the named beneficiary of
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	1131	+	the recipient or, if there is no named beneficiary, to the recipient's estate. A benefit
	1132	+	payment owed to the member, surviving spouse, or alternate beneficiary which was
	1133	+	not paid before the death of the member, surviving spouse, or alternate beneficiary
	1134	+	must be paid to the named beneficiary of the recipient or, if there is no named
	1135	+	beneficiary, to the recipient's estate.
	1136	+	9.The board shall adopt rules providing for the receipt of retirement benefits in the
	1137	+	following optional forms:
514	1138		a.Single life.
515		-	b.An actuarially equivalent joint and survivor option, with fifty percent or one ~~hundred~~
516		-	percent options.
	1139	+	b.An actuarially equivalent joint and survivor option, with fifty percent or one
	1140	+	hundred percent options.
517	1141		c.Actuarially equivalent life with ten-year or twenty-year certain options.
518	1142		d.An actuarially equivalent partial lump sum distribution option with a twelve-month
519	1143		maximum lump sum distribution.
520		-	e.An actuarially equivalent graduated benefit option with either a one percent or two
521		-	percent increase to be applied the first day of January of each year.
522		-	Except for supreme and district court judges, unless a member specifically requests that the
523		-	member receive benefits according to one of these options at the time of applying for
524		-	retirement, all retirement benefits must be in the form of a single life benefit. For supreme and
525		-	district court judges, unless a member specifically requests that the member receive benefits
526		-	according to one of these options at the time of applying for retirement, all retirement benefits
527		-	must be in the form of a lifetime monthly pension with fifty percent of the benefit continuing for
528		-	the life of the surviving spouse, if any.
529		-	10.The fund may accept rollovers from other eligible plans under rules adopted by the board for
530		-	the purchase of additional service credit, but only to the extent the transfer is a rollover
531		-	contribution that meets the requirement of section 408 of the Internal Revenue Code.
532		-	11.The board may accept trustee-to-trustee transfers as permitted by Internal Revenue Code
533		-	section 403(b)(13) and section 457(e)(17) from an Internal Revenue Code section 403(b)
534		-	annuity or Internal Revenue Code section 457 deferred compensation plan for the purchase of
535		-	permissive service credit, as defined in Internal Revenue Code section 415(n)(3)(A) or as
536		-	repayment of a cashout from a governmental plan under Internal Revenue Code section
537		-	415(k)(3).
538		-	12.The board may establish individual retirement accounts and individual retirement annuities as
539		-	permitted under section 408(q) of the Internal Revenue Code to allow employees to make
540		-	voluntary employee contributions. The board may adopt rules to implement and administer the
541		-	accounts and annuities under this section. H. B. NO. 1419 - PAGE 13
542		-	____________________________ ____________________________
543		-	Speaker of the House President of the Senate
544		-	____________________________ ____________________________
545		-	Chief Clerk of the House Secretary of the Senate
546		-	This certifies that the within bill originated in the House of Representatives of the Sixty-ninth Legislative
547		-	Assembly of North Dakota and is known on the records of that body as House Bill No. 1419.
548		-	House Vote: Yeas 68 Nays 22 Absent 4
549		-	Senate Vote:Yeas 45 Nays 2 Absent 0
550		-	____________________________
551		-	Chief Clerk of the House
552		-	Received by the Governor at ________M. on _____________________________________, 2025.
553		-	Approved at ________M. on __________________________________________________, 2025.
554		-	____________________________
555		-	Governor
556		-	Filed in this office this ___________day of _______________________________________, 2025,
557		-	at ________ o’clock ________M.
558		-	____________________________
559		-	Secretary of State
	1144	+	e.An actuarially equivalent graduated benefit option with either a one percent or
	1145	+	two percent increase to be applied the first day of January of each year.
	1146	+	Except for supreme and district court judges, unless a member specifically requests
	1147	+	that the member receive benefits according to one of these options at the time of
	1148	+	applying for retirement, all retirement benefits must be in the form of a single life
	1149	+	benefit. For supreme and district court judges, unless a member specifically requests
	1150	+	that the member receive benefits according to one of these options at the time of
	1151	+	applying for retirement, all retirement benefits must be in the form of a lifetime monthly
	1152	+	pension with fifty percent of the benefit continuing for the life of the surviving spouse, if
	1153	+	any.
	1154	+	10.The fund may accept rollovers from other eligible plans under rules adopted by the
	1155	+	board for the purchase of additional service credit, but only to the extent the transfer is
	1156	+	a rollover contribution that meets the requirement of section 408 of the Internal
	1157	+	Revenue Code.
	1158	+	11.The board may accept trustee-to-trustee transfers as permitted by Internal Revenue
	1159	+	Code section 403(b)(13) and section 457(e)(17) from an Internal Revenue Code
	1160	+	section 403(b) annuity or Internal Revenue Code section 457 deferred compensation
	1161	+	plan for the purchase of permissive service credit, as defined in Internal Revenue
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	1195	+	Code section 415(n)(3)(A) or as repayment of a cashout from a governmental plan
	1196	+	under Internal Revenue Code section 415(k)(3).
	1197	+	12.The board may establish individual retirement accounts and individual retirement
	1198	+	annuities as permitted under section 408(q) of the Internal Revenue Code to allow
	1199	+	employees to make voluntary employee contributions. The board may adopt rules to
	1200	+	implement and administer the accounts and annuities under this section.
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